Vauxhall EV price cuts to get below grant threshold
Vauxhall has cut the prices of its top-spec Mokka-e and the Vivaro-e Life models to ensure they are still eligible for the Government’s plug-in car grant.
Prices of the new Mokka-e, which is only launching this month, have been realigned by £45 across the range to help make way for the big cut in the price of the Launch Edition model, which is only available from stock. That car has gone from over £37,000 to £34,995 to remain eligible for the £2,500 Government grant, that it last week announced would immediately drop from £3,000 and the threshold move from below £50,000 to under £35,000.
The Vivaro-e Life Edition model has also moved by over £2,000 to now sit at £34,950, as has the Vivaro-e Life Combi. All versions of the electric Corsa were already below the £35,000 border so aren’t changed.
Vauxhall’s move follows on from Citroen having adjusted the pricing of its top-spec e-C4 model to get it below £35,000.
Coronavirus leading to rise in flexible leasing
Fleets are increasingly shifting to a flexible lease approach to their vehicles due to the impact of the Covid-19 pandemic, according to ARI.
The company said it has doubled the size of its finance-leased fleet in the past 12 months, and recorded an 80% rise in interest for its flexlease product over the same period.
“Many customers have asked the question: what is the next five years going to look like for us? We still need vehicles, but the pandemic has proved there are lots of different ways of doing things that may be more time- and cost-efficient,” said ARI managing director Nick Caller. “So why are we paying fixed contract hire rates and maintenance packages for a service we no longer need as much? In many closed-end leasing contracts, charges and margins can make up more than 15% of overall cost of ownership.”
ARI said that with Flexlease, there are no end-of-contract mileage charges, and businesses are able to decide when they defleet vehicles. It said resale value, the asset and associated debt are shown on the fleet’s balance sheet, and the vast majority of the agreed value of the vehicle is paid over the rental term. Once paid, fleets can opt to carry on leasing the vehicle on a lower rental. Alternatively, the vehicle can be sold, in which case 100% of the sale’s net profit is returned to the customer.
New small Seat EV due in 2025
Seat has confirmed that it will launch what it called an “urban electric vehicle” with a €20,000-€25,000 price tag in 2025, while its Cupra performance offshoot will launch the Tavascan electric model in 2024.
Seat is aiming to produce 500,000 urban electric cars per year for its Volkswagen Group parent company, with the new model set to replace the Seat Mii, Skoda Citigo and Volkswagen Up electric models currently in production.